Global Market Study on Luggage: Travel Bags to Witness Highest Growth by 2020


  • Published On : Apr-2015 |
  • Pages : 78 Pages |
  • Format :

Global luggage market includes bags for packaging of personal belongings. The market can be broadly segmented into casual bags, travel bags, and business bags. These segments include several types of luggage (such as spinner bags, suitcases, duffel bags, messenger bags, carry-on bags, expandable bags, and others) to suit various consumer needs. The luggage market can also be segmented on the basis of distribution channels, which broadly include specialist retailers, factory outlets, internet sales channels, and others. Specialist retailers include independent retailers that exclusively sell luggage or related products. Factory outlets are company-owned stores that generally sell products of the respective companies. Internet sales channels are those types of distribution channels that generate orders through the internet (including company’s own internet sales channel and other independent e-commerce channels). The others segment includes supermarkets, hypermarkets, discounters, and small independent retailers.

Increasing urbanization is escalating demand for lifestyle products. To some extent, luggage is also considered as a lifestyle product, especially in developing countries. Earlier, people in developing countries used one luggage for all purposes such as travel, tour, and business. However, owing to growing urbanization and rising disposable income, their lifestyles have changed, which is also reflected in their usage of purpose-based luggage. Asian and African countries are expected to experience highest urban growth in the future. According to the China Development Research Foundation, urban population in China is expected to increase from 52.6% in 2012 to 70% by 2030. Urbanization is growing at a swift pace across Asia Pacific. Pacific countries such as Australia and New Zealand already have high urbanization.

High net-worth individuals (HNWIs) refers to those people with liquid financial assets worth USD 1 million and above. There are several other hierarchies below them which are graded as affluent, and rich depending upon their liquid financial assets. The HNWI population, known for their lavish lifestyle, is increasing globally. This, in turn, is supporting the growth of the luggage market in terms of revenue. HNWIs tend to be more particular about their security and privacy as compared to the general masses. These individuals usually purchase high-end luggage such as those with in-built GPS tracking devices. According to the U.S. Wealth Report 2014 released by Capgemini and RBC Wealth Management in September 2014, the number of HNWIs in the U.S. was 4million in 2013. According to Bain & Company, a global management consulting firm based in the U.S., the number of HNWIs in China was 700,000 in 2013, almost twice as many as that in 2008.

Increasing urbanization and changing lifestyles are the key drivers for the global luggage market. Technological advancements are further creating opportunities for luggage sales among high net-worth individuals, for whom safety is a major concern. Increasing travel and tours, rising business activities, and growing number of educational courses are further propelling the demand for luggage. Luggage is sold through various types of distribution channels such as specialist retailers, factory outlets, supermarkets, hypermarkets, and internet sales. Owing to the boom in online commerce, luggage sales through the Internet have been growing at a significant pace.

The large unorganized luggage markets in developing countries pose one of the greatest challenges for the organized luggage market. Countries such as China and India have large number of unorganized players. These regional players usually launch products with designs almost identical to those of the brands of global organized players. Unorganized players offer luggage at low costs as they save on costs of high-quality raw material, branding, advertisement, and R&D. The low- and medium-income populations in developing countries are the largest consumers of such relatively inferior products. The organized luggage market loses its prospective customers due to the presence of these players. In the absence of a strong anti-counterfeiting framework in developing countries, these unorganized players are flourishing and restraining the growth of the organized luggage market.

There have been several technological advancements in the luggage market such as provision for increased level of security and utility in the baggage. These luggage products are expected to be popular among the HNWI population. Connectivity features added to the luggage increases their traceability and makes them more secure for traveling. Smart luggage is equipped with technologies and features such as Global Positioning System (GPS), Bluetooth-enabled lock, and a USB port for recharging electronic devices such as mobile phones. 

In March 2015, Samsonite IP Holdings S.àr.l. announced the launch of GeoTrakR, a new line of suitcases equipped with a cellular-enabled baggage tracking system. ANDIAMO Luggage LLC, a luggage manufacturer based in the U.S., recently announced the launch of a baggage line with Wi-Fi Hotspot, battery charger, and other features. Rimowa GmbH (a luggage manufacturer based in Germany), in conjunction with Airbus Group (a France-based aircraft manufacturer) and Deutsche Telekom AG (a Germany-based telecommunications company), is developing Bag2Go, a smart suitcase line. The suitcase line is expected to be launched in 2016. Bag2Go would interact with sensors in the cargo holds of Airbus aircraft to identify their location.

Bluesmart Inc., a connected travel products company based in the U.S., recently raised USD 1.4 million through crowd funding from 3,500 investors to introduce a line of carry-on bags with a tracking system, scale, and battery with two USB chargers. Certain large technology companies such as AT&T Inc. are also engaged in the manufacture of smart bags that would track bags across airports. 

The major players in the global luggage market include Samsonite International S.A., Tumi Holdings, Inc., VIP Industries, VF Corporation, Briggs & Riley Travelware, Rimowa GmbH, MCM Worldwide, Louis Vuitton Malletier S.A., Goyard, and ACE Co, Ltd.

The travel bags segment (the largest product segment in 2013) grew from USD XX billion in 2010 to USD XX billion in 2013 at a CAGR of XX%. The business bags segment accounted for a relatively small market share during 2010 – 2013; however, it was the second fastest growing segment during this period.

The travel bags segment is projected to grow from an estimated USD XX billion in 2014 to USD XX billion by 2020 at a CAGR of XX% during the forecast period. 

Luggage market sales from the others segment (the largest distribution channel) grew from USD XX billion in 2010 to USD XX billion in 2013 at a CAGR of XX%. Internet sales of luggage witnessed highest CAGR of XX% during the same period. 

Sales from the others segment are projected to grow from an estimated USD XX billion in 2014 to USD XX billion by 2020 at a CAGR of XX% during the forecast period. The market revenue from internet sales of luggage is expected to witness the highest CAGR of XX% during the forecast period.

The major players in the global luggage market include:

  • Samsonite International S.A.
  • Tumi Holdings, Inc.
  • VIP Industries.
  • VF Corporation.
  • Briggs & Riley Travelware.
  • Rimowa GmbH.
  • MCM Worldwide.
  • Louis Vuitton Malletier S.A.
  • Goyard, and ACE Co, Ltd.
  • Other

Chapter 1 Preface

1.1 Report Description

1.2 Research Methodology

1.3 Assumptions

Chapter 2 Market Synopsis

Chapter 3 Porter’s Five Forces Analysis

3.1 Bargaining Power of Suppliers

3.2 Bargaining Power of Buyers

3.3 Threat of Substitutes

3.4 Threat of New Entrants

3.5 Intensity of Rivalry

Chapter 4 Industry Overview

4.1 Market Definition

4.2 Market Drivers

     4.2.1 Increasing urbanization and changing lifestyles

     4.2.2 Growing interest of people in tourism

     4.2.3 Growing number of high net-worth individuals

4.3 Market Restraints

     4.3.1 Large unorganized markets in developing countries

     4.3.2 Unstable raw material prices

4.4 Opportunities

     4.4.1 Emerging technologies in the luggage industry are expected to fuel market growth

4.5 Market Trends

     4.5.1 Increasing demand for ultra-light weight luggage

Chapter 5 Market Size and Forecast, by Product

5.1 Luggage Market Size and Forecast, by Product

     5.1.1 Casual bags

     5.1.2 Travel bags

     5.1.3 Business bags

5.2 Price Point Analysis

Chapter 6 Market Size and Forecast, by Distribution Channel

6.1 Luggage Market Size and Forecast, by Distribution Channel

     6.1.1 Specialist retailers

     6.1.2 Factory outlets

     6.1.3 Internet Sales

     6.1.4 Others

Chapter 7 Market Size and Forecast, by Geography

7.1 North America

     7.1.1 The U.S.

             7.1.1.1 Market overview

     7.1.2 Canada

             7.1.2.1 Market overview

7.2 Europe

     7.2.1 Germany

             7.2.1.1 Market overview

     7.2.2 Italy

             7.2.2.1 Market overview

     7.2.3 France

             7.2.3.1 Market overview

7.3 Asia Pacific

     7.3.1 Japan

             7.3.1.1 Market overview

     7.3.2 China

             7.3.2.1 Market overview

     7.3.3 India

             7.3.3.1 Market overview

7.4 Rest of the World (RoW)

     7.4.1 Brazil

             7.4.1.1 Market overview

Chapter 8 Competitive Scenario

8.1 Market Share Analysis

8.2 Competitive Benchmarking

Chapter 9 Company Profiles

9.1 Samsonite International S.A.

     9.1.1 Company overview

     9.1.2 Products and services

     9.1.3 Financial performance

     9.1.4 Recent developments

9.2 Tumi Holdings, Inc.

     9.2.1 Company overview

     9.2.2 Products and services

     9.2.3 Financial performance

     9.2.4 Recent developments

9.3 VIP Industries Ltd.

     9.3.1 Company overview

     9.3.2 Products and services

     9.3.3 Financial performance

     9.3.4 Recent developments

9.4 VF Corporation

     9.4.1 Company overview

     9.4.2 Products and services

     9.4.3 Financial performance

     9.4.4 Recent developments

9.5 Briggs & Riley Travelware

     9.5.1 Company overview

     9.5.2 Products and services

     9.5.3 Financial performance

     9.5.4 Recent development

9.6 Rimowa GmbH

     9.6.1 Company overview

     9.6.2 Products and services

     9.6.3 Financial performance

     9.6.4 Recent developments

9.7 MCM Worldwide

     9.7.1 Company overview

     9.7.2 Product and services

     9.7.3 Financial performance

     9.7.4 Recent developments

9.8 Louis Vuitton Malletier S.A.

     9.8.1 Company overview

     9.8.2 Products and services

     9.8.3 Financial performance

     9.8.4 Recent developments

9.9 Goyard

     9.9.1 Company overview

     9.9.2 Products and services

     9.9.3 Financial performance

     9.9.4 Recent developments

9.10 ACE Co., Ltd.

     9.10.1 Company overview

     9.10.2 Products and services

     9.10.3 Financial performance

     9.10.4 Recent developments


List of Tables

TABLE 1 Snapshot: Global market for luggage, 2013 and 2020

TABLE 2 Impact analysis of market drivers

TABLE 3 Impact analysis of market restraints

TABLE 4 Global luggage market size, by product, 2010 – 2013 (USD billion)

TABLE 5 Global luggage market size, by product, 2014 – 2020 (USD billion)

TABLE 6 Average selling price, by region, 2014 (USD)

TABLE 7 Global luggage market size, by distribution channel, 2010 – 2013 (USD billion)

TABLE 8 Global luggage market size, by distribution channel, 2014 – 2020 (USD billion)

TABLE 9 Global luggage market size, by region, 2010 – 2013 (USD billion)

TABLE 10 Global luggage market size, by region, 2014 − 2020 (USD billion)

TABLE 11 North American luggage market size, by country, 2010 – 2013 (USD billion)

TABLE 12 North American luggage market size, by country, 2014 – 2020 (USD billion)

TABLE 13 North American luggage market size, by product, 2010 – 2013 (USD billion)

TABLE 14 North American luggage market size, by product, 2014 – 2020 (USD billion)

TABLE 15 North American luggage market size, by distribution channel, 2010 – 2013 (USD billion)

TABLE 16 North American luggage market size, by distribution channel, 2014 – 2020 (USD billion

TABLE 17 European luggage market size, by country, 2010 – 2013 (USD billion)

TABLE 18 European luggage market size, by country, 2014 – 2020 (USD billion)

TABLE 19 European luggage market size, by product, 2010 – 2013 (USD billion)

TABLE 20 European luggage market size, by product, 2014 – 2020 (USD billion)

TABLE 21 European luggage market size, by distribution channel, 2010 – 2013 (USD billion)

TABLE 22 European luggage market size, by distribution channel, 2014 – 2020 (USD billion)

TABLE 23 Asia Pacific luggage market size, by country, 2010 – 2013 (USD billion)

TABLE 24 Asia Pacific luggage market size, by country, 2014 – 2020 (USD billion)

TABLE 25 Asia Pacific luggage market size, by product, 2010 – 2013 (USD billion)

TABLE 26 Asia Pacific luggage market size, by product, 2014 – 2020 (USD billion)

TABLE 27 Asia Pacific luggage market size, by distribution channel, 2010 – 2013 (USD billion)

TABLE 28 Asia Pacific luggage market size, by distribution channel, 2014 – 2020 (USD billion)

TABLE 29 RoW luggage market size, by country, 2010 – 2013 (USD billion)

TABLE 30 Row luggage market size, by country, 2014 – 2020 (USD billion)

TABLE 31 Row luggage market size, by product, 2010 – 2013 (USD billion)

TABLE 32 RoW luggage market size, by product, 2014 – 2020 (USD billion)

TABLE 33 RoW luggage market size, by distribution channel, 2010 – 2013 (USD billion)

TABLE 34 RoW luggage market size, by distribution channel, 2014 – 2020 (USD billion)

TABLE 35 Products of Samsonite International S.A.

TABLE 36 Products of Tumi Holdings, Inc.

TABLE 37 Products and services of VIP Industries Ltd.

TABLE 38 Products of VF Corporation

TABLE 39 Products of Briggs & Riley Travelware

TABLE 40 Products and services of Rimowa GmbH

TABLE 41 Products of MCM

TABLE 42 Products of Goyard


List of Figures 

FIG. 1 Luggage market: Porter’s five forces analysis

FIG. 2 Urbanization in Asia-Pacific across sub-regions, 2010 and 2020

FIG. 3 International tourist arrivals in million, 2010 – 2012

FIG. 4 Global colored high-density polyethylene (HDPE) price trend, July 2013 – October 2014 (cents/pound)

FIG. 5 Global aluminum price trend, March 2014 – February 2015 (USD/lb)

FIG. 6 Global luggage market share by value, by region, 2013 and 2020

FIG. 7 Global market share by company by value, 2013

FIG. 8 Competitive mapping of product segments across global regions

FIG. 9 Net sales and profit of Samsonite International S.A., 2011 − 2013 (USD million)

FIG. 10 Net sales and net income of Tumi Holdings, Inc., 2012 − 2014 (USD million)

FIG. 11 Revenue and profit of VIP Industries Ltd., 2011 − 2013 (USD million)

FIG. 12 Revenue and net income of VF Corporation, 2012 − 2014 (USD billion)

FIG. 13 Revenue and net profit of Louis Vuitton S.A., 2012 − 2014 (USD billion)

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